The clock is ticking … student loan payments are set to restart in a month. Be ready and see where things stand.
TO SUM IT UP
- President Joe Biden is planning to announce a student loan forgiveness program by the end of the month. That’s when the current payment pause is up.
- One possibility: $10,000 in relief for some borrowers.
- Some advocates say that doesn’t go far enough and are concerned with the lack of details so far.
- Student loan payments have been paused since March 2020, part of federal pandemic relief signed into law by former President Donald Trump and extended by Biden.
- There hasn’t been guidance on when, or if, payments will restart.
- It’s reported that Biden will give borrowers making under $150,000 about $10,000 in relief. But his administration has been mostly quiet on specifics.
- Experts say the pause will likely be extended for a seventh time.
- Why? Those reasons cover the midterm elections, rising inflation and lack of communication from loan servicers.
- Still, canceling the debt doesn’t attack the rising cost of higher education.
WHY IT MATTERS
- The millions of Americans burdened with student loans hold more than $1.7 trillion in debt. Most of that is federal.
- A 2022 study found most Gen Z and millennial borrowers delayed a major financial decision — such as buying a house — thanks to their student loan debt.
- 59% of graduates with debt said higher education improved their opportunities in the workplace. 10% said they regretted it.
READ MORE ABOUT THIS IN THE SUM
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